Black Box shares fall 5% after Q1 results; PAT jumps 55%

Shares of Black Box Ltd hit a lower circuit of 5 per cent during the trading session on Wednesday after the company reported a mixed set of numbers in the June 2024 quarter results. The IT solutions provider reported its earnings during the market hours on Wednesday itself.

The company's net profit came in at Rs 37 crore in the June 2024 quarter, rising 55 per cent on a year-on-year (YoY) basis. The company had reported a net profit of Rs 24 crore in the year ago period. Its PAT margins expanded to 2.6 per cent for the reported quarter.
 

However, its revenue from operations dropped 9 per cent YoY to Rs 1,423 crore in Q1FY25, compared to Rs 1,571 crore in the same quarter previous fiscal year. Ebitda for the quarter increased 28 per cent YoY to Rs 115 crore, while the Ebitda margins expanded 240 basis points (bps) to 8.1 per cent for the quarter.
 

Following the announcement of Q1 results, shares of Black Box Ltd dropped 5 per cent, locked in the seller circuit, at Rs 502.95 on Wednesday. The company's total market capitalization stood at little more than Rs 8,500 crore. The stock had settled at Rs 529.40 on Tuesday.
 

Shares of Black Box have surged more than 485 per cent in the last 18 months, while the stock has gained 185 per cent from its 52-week low hit about 11 months ago. The stock has rallied 70 per cent in 2024 so far, while it is up 25 per cent in the last one month.
 

“Our strategic exit from low-value, non-accretive customers had a short-term impact on revenue. However, our relentless focus on productivity and margins allowed us to meet EBITDA targets and nearly achieve PAT guidance. Core operations demonstrated robust strength, with substantial growth in key areas, highlighting the resilience of our business model, said Sanjeev Verma, Whole Time Director, Black Box.
 

"As we move into FY25, our focus will remain on capitalizing on our strong pipeline and robust order book. With each business segment gaining momentum, we are confident in our ability to deliver enhanced performance and meet our revenue and profitability guidance," he said.
 

During the quarter gone by, deal wins from data Center and in-building 5G solutions stood at $11 million, while digital workplace, connected building, CX, networking solutions, on-demand solutions and managed services stood at $13 million. Deal wins from KVM solutions stood at $4 million. Black Box is Essar’s key investment in the technology space.
 

Black Box is a global digital infrastructure integrator delivering network and system integration services and solutions, support services, and technology products to businesses in the United States, Europe, India, Asia Pacific, the Middle East, and Latin America and has around 4,000 professionals globally.